Microsoft Confirms $599 Price for ROG Xbox Ally, $999 for High-End Ally X

Microsoft has officially confirmed pricing for its first handheld gaming PCs developed in collaboration with Asus, ending weeks of speculation amid tariff-related uncertainty in the United States. The entry-level ROG Xbox Ally will launch at $599, while the higher-performance ROG Xbox Ally X is set at $999, with both devices scheduled to hit shelves on October 16.

Pre-orders are now open, positioning Microsoft’s new handhelds directly against the Steam Deck, Lenovo Legion Go, and GPD Win series. The base Ally offers comparable value to Valve’s popular Steam Deck, while the Ally X pushes into premium territory with hardware rivaling Lenovo’s upcoming Legion Go 2.

Despite carrying the Xbox brand, the new handhelds are closer in design and function to existing Windows-based portable PCs. The key differences lie in Microsoft’s software innovations: a streamlined Xbox Full Screen Experience interface and a backend solution called Advanced Shader Delivery, both aimed at improving the Windows handheld gaming experience.

The Xbox Full Screen Experience provides a simplified UI that allows players to install and launch games from the Xbox Store, Battle.net, and other storefronts while bypassing the traditional Windows desktop. Microsoft claims the interface can save up to 2GB of RAM, offering a performance edge. Advanced Shader Delivery, meanwhile, pre-compiles shaders before gameplay begins, reducing stuttering and ensuring smoother performance a common issue with Windows handheld gaming.

On the hardware side, the standard ROG Xbox Ally comes equipped with an AMD Ryzen Z2 A processor, 512GB of storage, and a 1080p 120Hz IPS display. Priced at $599, the configuration closely matches Valve’s 512GB Steam Deck OLED, which retails for $549, though Valve also offers cheaper 256GB and 1TB variants.

The ROG Xbox Ally X, at $999, significantly boosts performance with the Ryzen AI Z2 Extreme SoC, 24GB of LPDDR5X RAM, and 1TB of storage. It is positioned directly against Lenovo’s Legion Go 2, which offers comparable specifications with additional features such as detachable controllers and a 144Hz screen at a slightly higher price point.

At the top end of the market, GPD’s recently launched Win 5 remains the most powerful — and most expensive — Windows handheld PC, starting at $1,648. Featuring a Ryzen AI Max+ 395 processor that rivals an Nvidia RTX 4060, the Win 5 sets a high performance bar, though its reliance on an external battery makes it less portable than its rivals.

With Microsoft stepping into handheld gaming hardware, the company is betting on software optimization and Xbox ecosystem integration to differentiate itself in an increasingly crowded market. Whether the ROG Xbox Ally lineup can carve out space alongside the Steam Deck’s dominance will depend on how well its promised user experience improvements translate to real-world play.